Insurance and analytics provider Verisk has reported income from continuing operations of $215.8 million for the fourth quarter of 2022, a rise of more than 82% from the $118.3 million reported a year earlier.
Verisk attributes the year-on-year rise in net income from continuing operations to an impairment loss incurred in 2021 related to the disposition of its Financial Services segment, offset by a reversal of a litigation reserve.
Revenues from the firms continuing operations increased marginally to $630.4 million in Q4, including $5.6 million in storm-related revenue from hurricane Ian, and reflecting the impact of dispositions.
Verisk notes that there was no Financial Services segment revenue in the quarter as it closed the sale of Verisk Financial Services on April 8th, 2022.
Similarly, there was no Energy and Specialized Markets segment revenue in the quarter as the firm closed on the sale of the 3E business on March 11th, 2022, and the Energy business qualified for discontinued operations.
At the same time, on an OCC basis, revenue increased 8.1% including a 100 basis point contribution from storm-related revenue.
Verisk’s insurance segment revenues grew 11.9% in the quarter, from $563.4 million in the prior year quarter to $630.4 million.
Elsewhere, Verisk noted that underwriting & rating revenues increased 11.4% in the quarter and 6.5% on an OCC basis.
Claims revenue increased 13.2% in Q4 and 11.9% on an OCC basis. Verisk stated that the growth was broad-based with strong results recorded in property estimating, anti-fraud solutions and international.
For the full-year, Verisk reported a net income of $954.3 million, a substantial improvement from 2021’s $666.3 million.
Lee Shavel, president and CEO, Verisk, commented: “We completed a significant transformation of Verisk in 2022, returning to a dedicated data analytics and technology partner to the global insurance industry while continuing to deliver value to shareholders through growth and returns. We’ve started 2023 energized to capitalize on the substantial opportunity to partner with our clients and the industry to support their objectives in a rapidly evolving environment. With our industry centrality and expertise, unique data assets, and talented team, we are uniquely positioned to create value for the industry and deliver on our stated objectives.”
Elizabeth Mann, CFO, added: “Verisk closed out 2022 with very strong financial results. In the fourth quarter, Verisk delivered OCC revenue growth of 8.1% and OCC adjusted EBITDA growth of 12.9%, demonstrating strong sequential improvement and core operating leverage. For the full year 2022, OCC revenue increased 6.5% while OCC adjusted EBITDA increased 8.0%. We continue to execute against our commitment to deliver margin expansion and I am confident in our ability to achieve our stated 2024 goal.”
